Executive gift-buying guide

By John Vomhof Jr. – Staff reporter/broadcaster, Minneapolis / St. Paul Business Journal

Nov 25, 2011, 5:00am CSTUpdatedNov 24, 2011, 8:44am CST

Black Friday is upon us, which means the holiday shopping season is officially in full swing. In addition to buying gifts for your family and friends, it’s a great opportunity to recognize and thank your employees, clients, prospects and vendors.

While corporate gift-giving lagged during the recession, St. Croix Promotions Inc. Founder and CEO Pady Reigner said she thinks it’s starting to rebound.

“There’s this attitude that we’re going to get through this, and people want to thank their employees who are doing more and thank their customers for sticking with them,” she said.

Darcie Conran, business development manager at Dunn Bros Coffee Franchising Inc., said gift-givers also should consider quality, cost and “shareability” when selecting business-to-business gifts. She previously spent eight years as national sales manager for corporate gifts at Marshall Field’s and Target Corp.

“Put quality over quantity, but don’t overdo on the dollars,” she said. “Keep relevancy, purpose and professionalism in mind.”

“If you’re not, you’re missing a huge opportunity to have people remember you,” she said.

Reigner also recommends sending your gift early so it doesn’t get lost in the shuffle. She sends hers out in time for Thanksgiving.

How much should I spend?

Gift budgets vary widely. Many companies spend between $25 and $50 on their employees and clients, but others spend much more.

“Some companies don’t even bat an eye at spending $200 or even $500 for a top client,” Reigner said. “It really depends on what you’re trying to accomplish.”

While many companies are on tight budgets these days, Reigner warned against being too cheap. She recalled one client who came to St. Croix Promotions for ideas after giving out Christmas ornaments with the company’s logo on them the previous year. Employees considered it disrespectful.

“You don’t want to insult folks by seeming too chincy, especially with people working so hard nowadays,” Reigner said.

The same holds true for clients. For example, a $25 gift for the CEO of a Fortune 500 company wouldn’t be appropriate, she said.

Jack Farrell, president of Haskell’s Wine and Spirits, said gift-givers should plan to spend at least $30.

“You can get a pretty good bottle of champagne for that, or certainly a bottle of either red or white wine,” he said. “You make a nice impression at a reasonable price. The higher you go, the more memorable it will be.”

Also, Conran warned to be careful of companies’ gift rules. In recent years, more and more companies have imposed guidelines on the types of gifts their employees can accept. Some prohibit any gifts, while others might limit the value.

“It’s good to be aware of the policies at your recipient’s place of business,” she said. “If that’s not possible, take the safe route and send office shareables. Gifts of food, coffee, plants and things that add value to the overall workplace are good choices.”

Gift cards

Gift cards have become a popular holiday gift. Parasole Restaurant Holdings Inc. sells $2.5 million worth of them every holiday season, roughly half to two-thirds of which are purchased by corporate customers.

“Corporate giving becomes huge for us this time of year,” said Kip Clayton, Parasole’s vice president of business development. “The $5,000 orders drive things in a big way.”

The restaurant group received a lot of orders from financial advisers, orthodontists and other businesses that rely heavily on referrals.

“If a dentist receives a $1,000 gift card from an orthodontist he refers business to, every time he uses that card it will be like a billboard for that orthodontist,” Clayton said, noting that Parasole now offers co-branded gift cards that allow companies to put their own logo on the cards they give out to clients.

Reigner also recommends looking for ways to incorporate the gift card into a more memorable and longer lasting present. For example, you could package that card to Manny’s Steakhouse along with a set of steak knives or a Caribou Coffee card along with a coffee grinder. She also suggests putting the gift card in a wallet with your company’s logo on it.

“It doesn’t have to reinvent the wheel, but try

to find a way to do something memorable for your brand,” she said.

Food and wine

Holiday giving has changed over the past 10 or 20 years, Farrell said, recalling the days when it wasn’t uncommon for a company to buy 40 cases of wine or whiskey to give out to their clients. But wine still remains one of the most popular gifts this time of year.

“Wine is the gift of good taste,” Farrell said. It shows that you have good taste because you bought it, and it indicates that you think the recipient has good taste, too.

And wine definitely falls into the “useful” category, he said. “You may think that necktie looks great, but the person you give it to may think it’s ugly and never wear it. With wine, someone’s always going to drink it.”

Packaging a bottle of wine along with cheese or chocolates as part of a gift basket is a good way to make a dramatic statement, Farrell said. “Not many people are doing that anymore, so when you get something like that, you definitely notice it.”

Reigner suggested pairing a bottle of wine with a gift such as a nice bottle opener that is engraved with your logo.

Food also is a good gift option because it’s useful and, as Conran noted, it’s something that can be shared with co-workers.

That’s why chocolates are among the most popular gifts this time of year.

St. Paul’s Chocolat Celeste sells a lot of its fine chocolates to brokerages and other businesses that send them out as customer-appreciation gifts to all their clients. The company creates custom bonbons featuring corporate logos on them and also offers items with holiday images such as snowflakes or Christmas trees.

“When someone gets chocolates, they typically share them with others at the office,” Chocolat Celeste owner Mary Leonard said. “But ours aren’t shared as often because people want to keep them for themselves.”

Apparel

Apparel can be great option, particularly for employees, Reigner said. It’s something they can use, and most employees are proud to show off where they work.

Jackets are among the most popular holiday gifts offered at St. Croix Promotions, Reigner said. For example, she suggests giving employees a high-quality Nike jacket with your company’s logo embroidered on the chest or sleeve.

“It always has perceived value,” she said.

Meanwhile, high-end business attire is a popular gift for employees to give to their bosses, said Marty Mathis, owner of Marty Mathis Clothiers in downtown Minneapolis.

“Most people are probably looking to spend around $100 or so, which in this store gets into neckties, bow ties, scarves, gloves and cuff links,” he said, noting that sometimes employees will pool together to buy something a little more expensive.

Mathis also suggested talking to an executive’s assistant or secretary to ask where the executive likes to shop. The store then may have some gift suggestions based on his or her previous purchases.

jvomhof@bizjournals.com | (612) 288-2101

By John Vomhof Jr. – Staff reporter/broadcaster, Minneapolis / St. Paul Business Journal